The IRS has announced new federal income tax brackets for 2027, raising income thresholds to account for inflation.
For single filers, the new tax brackets are:
- 10%: $12,800 or less
- 12%: $12,801 to $52,025
- 22%: $52,026 to $109,125
- 24%: $109,126 to $208,325
- 32%: $208,326 to $264,550
- 35%: $264,551 to $661,375
- 37%: More than $661,375
The income thresholds are doubled for married couples filing jointly, except for the highest tax bracket.
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The changes apply to income earned in 2027, with taxpayers filing those returns in 2028.
The IRS also announced an increase in the standard deduction, which reduces the amount of income subject to federal taxes.
For married couples filing jointly, the deduction will rise to $33,200, an increase of $1,000 from 2026. Single filers will receive a standard deduction of $16,600, while heads of households can deduct $24,925.
Families will also see an increase in the child tax credit, which will rise by $100 to a maximum of $2,300 per qualifying child.
Click here to see the list of inflation adjustments for nearly 70 tax provisions.
